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Permitted situations for early release of Employee Savings Plan

Permitted situations for early release of Employee Savings Plan

French legislation makes provisions for several cases where employees are permitted to benefit from early redemption while keeping the tax advantages specific to employee savings plans.

Various early release scenarios

The table below summarises, for each scheme (PEE - company savings plan, or PERCO - collective retirement savings plan), the situations applying to an employee that give entitlement to redemption of holdings under a plan before expiry of the lockup period.

For more information, you can see a detailed explanation by clicking on the relevant situation.

Marriage or civil partnership (PACS in France)
Early redemption in case of Marriage or civil partnership (PACS in France).
Divorce, separation or dissolution of a civil partnership
Early redemption in case of Divorce, separation or dissolution of a civil partnership.
Birth or adoption of a third child, then each subsequent child
Early redemption in case of Birth or adoption of a third child, then each subsequent child.
Formation or take-over of a business, or becoming self-employed
Early redemption in case of formation or take-over of a business, or becoming self-employed.
Ending of the employment contract
Early redemption in case of ending of the employment contract.
Extension to the main residence
Early redemption in case of extension to the main residence
Construction of the main residence
Early redemption in case of construction of the main residence
Acquisition of the main residence
Early redemption in case of acquisition of the main residence
Repairs following a natural disaster
Early redemption in case of repairs following a natural disaster
Retirement
Early redemption in case of retirement
Death
Early redemption in case of death
Incapacity
Early redemption in case of incapacity
Insolvency
Early redemption in case of insolvency
Expiry of entitlement to unemployment benefits
Early redemption in case of expiry of entitlement to unemployment benefits

Submitting a request for early redemption

ONLINE:

In your “private area”, “Your transactions” menu, “Enter a redemption” / “Early redemption”.

  • You can either submit the entire request online:
    • then you enter and confirm your request online, uploading the required supporting documents in your secure area.
  • Or you can initiate your request online and complete it by sending the following documents to Société Générale Employee Savings Plan, TSA 90035, 93736 Bobigny Cedex 9, France:
    • the downloadable print out provided once online input is completed;
    • all required supporting documents (refer to details sheet for each redemption situation).

Please note:
Any request for early redemption entered on ESALIA is cancelled after 30 days if Société Générale has not received the supporting documents.
A photocopy of the relevant documents is sufficient.
Copies of birth, death or marriage certificates issued in France can be requested online at the following address: https://mdel.mon.service-public.fr/acte-etat-civil.html

BY POST:

By completing the redemption request form provided with your Account Statement.

Redemption requests must:

  • be properly completed, dated and signed,
  • state the reason for requesting early release and the date on which the trigger event occurred,
  • be accompanied by copies of all the supporting documents necessary to release the assets held.

The redemption request form and supporting documents should be sent to the Employee Savings Plan unit at:
Société Générale Epargne Salariale - TSA 90035 - 93736 Bobigny Cedex 9 - FRANCE

Please note: 
All supporting documents written in a language other than French must be accompanied by a translation that has been certified by a translator qualified to do so, or by a consular authority.

Details concerning redemptions

Redemption processing 

Processing time depends on the fund valuation frequency.
If your redemption request involves funds with different valuation frequencies, payment is made once all the net asset values (realisable values) of all funds are known.

Payment to a third party 

Payment to a third party is permitted in the following cases:

  • Death of the employee savings plan account holder: payment is to the notary handling the estate, or to the estate beneficiary(ies).
  • Account holder insolvency: payment to designated third party(ies) at the request of the conciliation panel (Commission de surendettement - a pre-bankruptcy stage) or if ordered to do so by the court.

In all other cases, redemption will be effected by credit transfer to an account held in the name of the account holder, or by a cheque made payable to the account holder.

Taxation of redemption proceeds 

Capital gains are exempt from income tax in cases of early redemption, but are subject to various social contributions at an overall rate of 15.5% since 1 July 2012 (the CSG universal social security contribution, the CRDS contribution to repayment of social debt, the CRSA, the prélèvement social and contribution additionnelle add-ons).
Note that in the event of the death of the employee savings plan beneficiary, the redemption request must be submitted before the first day of the seventh month following the death, otherwise capital gains realised commencing from that date are taxed following standard procedure.

Redemption terms

Holdings involved in early redemption:

  • Only sums invested before the redemption trigger event date can be redeemed.
  • Special case for profit-sharing: only profit-sharing entitlements relating to financial years that have ended can be redeemed, except in cases where the plan beneficiary is no longer employed or has died.
  • Redemption in the form of securities is not permitted for locked holdings of assets.
  • A request for full redemption implies the redemption of both unlocked and locked holdings.

Redemption with a conditional order

  • Redemptions conditional on achieving a minimum security value or price (orders with a stated security value or floor price) are possible in all early release situations with the exception of the insolvency or death of the account holder.
  • When you enter a minimum security value or price to trigger redemption, then redemption is effected as soon as the stated figure is reached if this occurs within 3 months of the request being submitted.
  • If the minimum figure is not reached during said three-month period, your redemption request will be cancelled and you must re-submit another request, if you wish to do so.